President Trump responded to Iran’s peace deal conditions by demanding compensation for deaths caused by wars, attacks, and protests. This move, a departure from previous discussions, could complicate efforts to reopen the Strait of Hormuz. Trump’s counterproposal comes after Tehran’s calls for compensation and an end to sanctions, aligning with terms from a previous failed peace agreement in June. Throughout the conflict that began in February, Trump has vacillated between threats of escalation and claims of impending peace.
“We’re seeking damages for the harm they’ve inflicted over five decades,” Trump stated at the White House, emphasizing that payments should address civilian and U.S. military casualties in the region. This stance led to a five percent increase in oil prices on Monday, dampening hopes of a strait reopening deal.
Regarding Iran’s actions during protests in late 2025 and 2026, Trump accused Iran of killing around 52,000 demonstrators. While opposition groups claim higher casualties, the U.S.-based Human Rights Activists News Agency reported about 7,000 deaths, including 6,500 protesters. Trump had previously encouraged regime change in Iran during the conflict’s onset, with rights groups noting ongoing government suppression.
The President also called for compensation to families of 17 U.S. sailors killed in a 2000 Yemen attack, attributed to al-Qaeda. Trump further stated Iran should be accountable for damages in Lebanon, Syria, Yemen, and Gaza. Iran indicated progress towards a final agreement with Oman for new shipping routes through the strait but insisted on meeting stipulations, including compensation and sanctions relief, before reopening the vital waterway.
The conflict has disrupted oil and gas flows, causing a surge in prices and inflation. Ironically, an agreement with Oman could give Tehran more influence over the strait than before the conflict. Trump faces domestic pressure to end the unpopular war, especially as fuel prices impact rural areas supporting him. Democratic Rep. Bill Keating described the situation as a potential capitulation, acknowledging the challenging reality.
Earlier discussions with Oman focused on defining shipping routes and services, with technical details pending resolution. The U.S. has opposed any deal allowing Tehran to levy fees for strait access. Despite U.S. military actions, including strikes in July, Iran maintains control over the strait. The U.S. and Iran agreed to a ceasefire in June, but subsequent U.S. blockades led to hostilities, with Iran targeting American allies and commercial vessels in the region.